Market Report -- In Play (GOLD)

November 10, 2009 6:25 AM ET

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Stocks mentioned in this article: Randgold Resources ADR Reptg 1 Ord Shs (GOLD) Stock Quote, Chart, News, Add to Watchlist
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Randgold Resources announces it is to fast-track its Gounkoto project Co announces it is to fast-track its Gounkoto project after a scoping study and first resource declaration confirmed robust economics well in excess of the company's hurdle rates. A prefeasibility study on the project, situated just 25 kilometres south of the company's flagship Loulo complex in Mali, has been scheduled for completion by the end of the first quarter of 2010. The scoping study estimated an inferred mineral resource of 2.65 mln ounces at a grade of 6.3g/t, with pit optimisations at gold prices of $650/oz and $850/oz both showing internal rates of return in excess of 60%. Gounkoto joins a project line-up which also includes the Tongon mine in Cote d'Ivoire, currently being built and due for first production in the fourth quarter of 2010; Massawa in Senegal, where a prefeasibility study will be completed before the end of this year; and Kibali (formerly known as Moto) in the Democratic Republic of Congo, recently acquired in partnership with AngloGold Ashanti. Chief executive Mark Bristow said that while 2009 was, as expected, proving to be a tough operating year for the company - which is substantially expanding its flagship Loulo complex and has converted the Morila joint venture into a stockpile treatment operation - it was also producing some very significant rewards thanks to outstanding delivery from its exploration and project teams and success on the new business front.

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